Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Tesla Motors Inc. (TSLA)’s Gigafactory Key To Sustaining Stock Above The $200 Mark

Tesla Motors Inc. (NASDAQ:TSLA) is back to familiar territories above the $200 trading mark after plummeting earlier in the week with UBS director and auto analyst, Colin Langan, reiterating the stock remains volatile. During an interview on CNBC, Langan, painted more doubt on the giant electric company ability to attain impressive sales in the coming years based on the fact that its cars still remain expensive for mass markets.

Tesla, is TSLA a good stock to buy, Ben Kallo,

Tesla Motors Inc. (NASDAQ:TSLA) cars remain expensive compared to normal cars attributed to the fact that battery costs are still high as the company prepares to start manufacturing its own from a plant in Nevada. The economics of the battery factory according to the analyst may still affect Tesla’s ability to reduce the prices of its cars as early as 2025.

“Comparing it to a gas vehicle by 2020 with the scale benefit of the Gigafactory, you are getting it to be $7,000-10,000 more than a mass market vehicle on the gas side. […] If you assume you can double the density of a battery and you look at 2025 you still $3,000 to $6,000 more expensive,” said Mr. Langan

The battery factory was expected to accord Tesla Motors Inc. (NASDAQ:TSLA) a breakthrough in developing highly affordable cars something that the analyst remains skeptical on. The ongoing uncertainty over oil prices also paints further doubt on whether consumers will opt to buy electric cars that are relatively expensive or opt for fuel-efficient and affordable cars.

Tesla Motors Inc. (NASDAQ:TSLA) could enjoy an upside with the Gigafactory that will not only be used to produce batteries for electric cars but may also find use on solar power applications. Steve Grasso believes Tesla could get an uplift in the market should it resort to manufacturing batteries for the national grid something that the analyst remains skeptical on.

“It is questionable can the economics really work and is Lithium the same solution that we should be using for stationary storage. There might be heavier applications that might work better in stationary storage,” said Mr. Langan.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!